What is the purpose of the statement of cash flows? a) To summarize a company's profits and lossesb) To provide information about a company’s cash receipts and paymentsc) To report the company’s assets, liabilities, and equityd) To show the changes in stockholder’s equity

What is the purpose of the statement of cash flows? a) To summarize a company's profits and lossesb) To provide information about a company’s cash receipts and paymentsc) To report the company’s assets, liabilities, and equityd) To show the changes in stockholder’s equity

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter1: The Demand For And Supply Of Financial Accounting Information

Section: Chapter Questions

Problem 20GI

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What is the purpose of the statement of cash flows?

a) To summarize a company's profits and losses
b) To provide information about a company’s cash receipts and payments
c) To report the company’s assets, liabilities, and equity
d) To show the changes in stockholder’s equity

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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